Stifel Financial has reached a confidential agreement to settle with investors who won a Financial Industry Regulatory Authority arbitration award in early 2025 related to former Stifel broker Chuck Roberts. The Jannetti family filed a stipulation of dismissal with prejudice, and withdrew their motion for entry of judgment.
Court documents did not reveal the amount of the settlement, but it stemmed from a nearly $133 million FINRA arbitration award, with the Jannetti family claiming Roberts misrepresented structured notes.
Jeff Erez, the attorney representing the Jannettis, declined to comment. A spokesman for Stifel did not immediately return a request for comment.
While the family originally sought a $5 million penalty, FINRA arbitrators opted for the far higher award, claiming they believed Stifel had “actual knowledge of the wrongfulness of the conduct” and knew there was a “high probability” the Jannetti family would face damages. Stifel argued the clients were “sophisticated” and knew the risks, and appealed FINRA’s decision last year.
In March, the court judge affirmed the arbitration award; then, in April, the Jannettis gave notice that they had agreed to a settlement in principle.
Stifel has had several settlements and arbitration awards involving Roberts, a former rep who was barred last July for failing to cooperate with a FINRA investigation into clients’ complaints that he made unsuitable recommendations.
In April, the firm settled another customer complaint for $1.175 million, and one in March for $1.2 million, also involving Roberts’ sales of structured products.
In a recent regulatory filing, Stifel said it faced various proceedings and claims from securities business activities, and estimated that aggregate losses could be upwards of $100 million in excess of the aggregate reserves for these matters.
“While we continue to believe that Stifel has viable defenses to at least limit its liability in these additional cases, we can provide no assurance that we will be able to settle these claims or will be successful in defending them on the merits, or that these claims will not result in material liability to the company,” the filing said.
Just this week, FINRA launched a review of how firms handle higher-risk structured products, including “worst-of” structured notes that can threaten principal investments.
According to a notice released Tuesday, FINRA’s review will examine firm conduct from January 2022 through the end of last year, focusing on how companies supervise the oversight of structured notes—particularly their compliance with Regulation Best Interest and FINRA rules.
